www.prodivnet.com 1www.prodivnet.com

September 2014

Diversity Jobs Index and Report

www.prodivnet.com 2

September 2014 Diversity Jobs Index and Report

PUBLISHER’S CORNERKevin M. WilliamsChief Marketing OfficerProfessional Diversity Network

Unless you’ve been cordoned off with no access to broadcast TV or social media feeds, chances are you’ve seen videos of the ALS Ice Bucket Challenge. Now legitimately a viral phenomenon, the marketing campaign involves people dumping buckets of ice water on themselves as a way to build awareness of amyotrophic lateral sclerosis (ALS,) otherwise known as “Lou Gehrig’s Disease.” With its combination of cause and social currency, there’s a golden egg for recruiters and hiring managers seeking to bolster workplace diversity. The key takeaway? There is power in tapping the right networks to effect change.

A critical component to the campaign’s success is the fact that participants challenge others in their personal networks. Part education, part call-to-action, this strategy has successfully rallied family, friends and even celebrities to publicly declare their support for ALS. This formula, combined with a long-term commitment from the company’s leadership, can also move the needle when it comes to diversity and inclusion in the workplace.

Last month, we discussed how companies can benefit from employing U.S. veterans and workplace diversity best practices in the Federal Government. This month we delve into the Financial Services industry’s diversity employment situation and explore potential opportunities for employers seeking top diverse talent.

With our impending acquisition of the National Association of Professional Women (NAPW), it’s also fitting that we examine raising the bar for women in the workplace. It goes without saying that women are critical to the U.S. economy, now accounting for nearly half of all U.S. employees and increasingly the primary or co-breadwinners in their households. We’ll uncover how and why employers should add more women to the ranks-especially in leadership roles.

Much like the ALS campaign’s approach to driving participation, the secret to recruiting top diverse talent is tapping into the right network AND incenting them to act. Employers just have to know where to look and how to communicate in a voice that resonates.

When diversity and inclusion is embraced by leadership and communicated through the organization-from the top down-amazing things can happen. We hope these insights help you move closer to developing a sustainable diversity strategy that ultimately drives your business forward.

www.prodivnet.com 3

The (Changing) Face Of Finance

Taking a queue from pop culture, the prototypical face of the U.S. financial industry has been characterized by men who, in gender and ethnicity, resemble Gordon Gekko, the protagonist of the movie Wall Street. While the financial sector includes much more than Wall Street bankers, this image sends a powerful message that is rooted in a well-documented history-white men represent the norm in the workplace.

Following the recent financial and economic crisis in America, the financial industry has been under scrutiny. The collapse of major banking institutions, a huge taxpayer-financed bailout and the effects of the housing market crash can still be felt worldwide, some say. Notwithstanding, the industry may be worthy of kudos when it comes to matters of workplace diversity. As a whole, women and minorities are generally well represented in the Finance industry and tend to hold positions across almost all occupations.

That’s great news. However, a look at an April 2013 report from the U.S. Government Accountability Office (GOA) reveals overall management in the financial services industry is 81 percent white. An analysis of pay within specific occupations also reveals that the frequency of women and minorities diminishes as pay grades increase. Indeed, when it comes to holding leadership roles and earning higher salaries, Gordon Gekko remains the clear winner.

These statistics have not changed in nearly a decade. According to the latest GOA data available, women made up about a quarter of senior management in the financial services industry in 2011. Of this group, only 13.5 percent are minorities, with African Americans accounting

for less than 3 percent of upper management jobs. Financial Services is a knowledge intensive industry, particularly at managerial levels. In most cases, a bachelor’s degree is a requisite for management positions in organizations with

www.prodivnet.com 4

less than 100 employees. Larger companies generally require a master’s degree for senior level employees. All things equal, educational attainment accounts for less than half of the disparity. An analysis of the employment situation for diverse employees in the financial industry also reveals minorities and women track about equally in moving up in pay.

In summary, financial services is a large industry with minorities and women being well represented. However, white males overwhelmingly hold management positions at the highest pay grades. Although educational attainment and wages are closely correlated at lower wage levels-namely administrative and functionary roles-this disparity cannot be explained by educational attainment.

Dodd-Frank: The Question of Compliance

In 2010, in response to the financial crisis, the Federal Government passed the Dodd-Frank financial reform law and included Section 342, which established the federal Offices of Minority and Women Inclusion (OMWIs). Though not well known, Section 342 was adopted to help correct racial and gender imbalances across the financial industry by prescribing inclusion requirements. The OMWI’s role is to set standards for workforce and supplier diversity, which is intended to ensure that women and people of color are fully participating and benefiting from finance.

In the wake of widespread reports of predatory lending in communities of color during the run-up to the financial crisis, it is worth noting that Section 342 includes language to address the issue. As the financial industry seeks to remedy this perception, increasing the presence of diverse employees in customer-facing positions may help to restore trust.

Today the onus is on each financial institution to self-report. Most do so on a quarterly basis via some external communiqué such as a company

website. Advocates say it’s a good first step. Others believe that without enforcement, Section 342 is limited in its ability to increase diversity in the financial sector.

Women in the Workplace: The Female Advantage

In the diversity and inclusion space, much is said about women as the emerging face of business and leadership. Women now account for nearly half of America’s workforce, but the tools and resources needed to ensure their professional success continue to lag behind. Perhaps recent data on the benefits of gender diversity can help shift this tide.

Researchers at Columbia Business School and the University of Maryland analyzed data on the top 1,500 U.S. companies from 1992 to 2006 to determine the relationship between the percentage of women in a firm’s senior management and the firm’s economic success. In short, the research concludes that companies that employ more women are simply more profitable.

The findings also suggest that including women on a senior management team adds to the diversity of perspectives, life experiences and problem-solving skills, all of which can contribute to a company’s overall financial success.

Women face a unique set of gender stereotypes that often hinder their ability to be effective in the workplace. Employers seeking to implement actionable diversity initiatives to employ more women should consider the following best practices:

• Put old stereotypes to rest: Challenge longstanding attitudes about women and her “commitment to the job.” Among other things, this includes embracing her management style, supporting opportunities for career advancement and understanding that caregiving roles vary for every woman.

www.prodivnet.com 5

August 2014 Diversity Jobs Index

The Diversity Jobs Index for the August 2014 report is 50.17, indicating a 1.51% increase in demand for diverse talent as compared to the month of July.

• Pay her fairly: Another issue women face at the workplace is earning less than men with identical titles and responsibilities within the company. Ensuring equitable, performance-based pay will not only help attract top talent, but also guard against attrition and improve overall employee satisfaction.

• Create a path: Unfortunately, the glass ceiling is not a thing of the past - but given a viable path to career advancement, women can lead, innovate and inspire others. By instituting programs that identify a path to promotion (i.e. higher wages) and opportunities for work/life balance, employers can recruit an increasing number of female candidates.

There is still a long way to go before gender equity in the workplace is realized, however the recent appointments of high profile women CEO’s, such as General Motors’s Mary Barra, IBM’s Ginni Rometty and PepsiCo’s Indra Nooyi, may signal a positive shift. As the data suggests, rising tides lift all boats and women are certainly equipped to steer the ship.

While the image of Gordon Gekko persists, particularly in the financial industry, his colleagues are increasingly becoming more diverse. And if more leaders can be female, they can also be multi-cultural, veterans, differently abled, LGBT or any combination of these-one hire at a time.

www.prodivnet.com 6

Employment Data by Segment

Diversity Jobs Report

Unemployment Rate by Segment

0  

20  

40  

60  

80  

100  

120  

140  

160  

All   African-­‐American   Hispanic   Asian   Disabled   Women   Veteran  

Millon

s  

Unemployed       FullAme       ParCme       Total  Employed  Labor  Force  

0%  

2%  

4%  

6%  

8%  

10%  

12%  

14%  

All   African-­‐American   Hispanic   Asian   Disabled   Women   Veteran  

Unemployment  Rate  

www.prodivnet.com 7

Employment Demographics by Education

Employment Demographics by Industry

0  

20  

40  

60  

80  

100  

120  

140  

160  

All   African-­‐American   Hispanic   Asian   Disabled   Women   Veteran  

Millions  

No  College  Degree   Bachelors  Degree  or  Higher      

0  

5  

10  

15  

20  

25  

Agriculture  forestry  fishing  and  hun8ng      

Mining       Construc8on       Manufacturing       Wholesale  and  retail  trade      

Transporta8on  and  u8li8es      

Informa8on       Financial  ac8vi8es      

Professional  and  business  

services      

Educa8onal  and  health  services      

Leisure  and  hospitality      

Other  services       Public  administra8on      

Millon

s  

African-­‐American  

Hispanic  

Asian  

Disabled  

Women  

Veteran  

www.prodivnet.com 8

What the Numbers Mean

Diversity Jobs Index: • From July to August there was a decrease in full time employment. Overall demand for all diverse

talent decreased, with the exception of Differently Abled persons.

Diversity Jobs Report:• The unemployment rate for diverse Americans increased by 0.27% from 6.42% to 6.69%. The

African American unemployment rate increased 1.41% from 11.11% to 12.52%. All other segments saw a 0.5%-0.7% increase in unemployment rate except for Hispanics who saw a 0.01% increase.

• Why is this significant? Given the overall population of African Americans, the unemployment rate for African Americans is not only significantly disproportionate, but increasing at a faster rate than other diverse groups over time.

Diverse Workforce Labor Market Statistics

Employment Demographics by Region

0  

2  

4  

6  

8  

10  

12  

14  

New  England       Mid  Atlan5c       Midwest       North  Central       South  Atlan5c       South  Central       Southwest       West       Pacific      

Millon

s  

African-­‐American  Hispanic  

Asian  

Disabled  

Women  

Veteran  

0%  

5%  

10%  

15%  

20%  

25%  

30%  

35%  

40%  

45%  

50%  

African-­‐American   Hispanic   Asian   Disabled   Women   Veteran  

%  of  Overall  Workforce   Unemployment  Rate   %  of  Unemployed  Workforce  

www.prodivnet.com 9

Financial Services Industry Highlights

Ethnic Composition

Caucasians clearly dominate the financial industry, accounting for 78% of all workers, 86% of those that are in the Top 10% income bracket, and 88% of those in the Top 1% income bracket.

African Americans make up 11% of all workers, 4% of the top 10%, and 3% of the top 1%.

Asians make up 6% of all workers, 8% in the top 10%, and 8% in the top 1%.

Male/Female Composition

Of the 61% of women who make up the Financial market, 21% are college educated, meaning 40% are not college educated, which some may think should justify the wage differential. BUT, when comparing college educated men and women (26% and 21%, respectively), men make 35% more per year, which correlates to $38,000 more. The data further shows:• Women who are 40 years of age or younger make 44% less in salary than their male counterparts.• Women who are age 40 account for 12% more of the market than men, but make 47% less on average than men. This correlates to roughly $50,000 per year. • Women who are age 30 or younger, namely in entry to mid-level jobs, make 40% less than men, which equates to nearly $30,000 per year.

On average, women ages 30 and under make $31,652 per year, which is $12,000 per year less than men. The wage gap further widens after women surpass age 30, with men making 46% percent more per year. This equates to women earning $46,000 per year less than men.

Men also reach the $100,000 salary or higher bracket more quickly.

In the top 10% income bracket in finance, women account for 26% of the industry. In the top 1% they account for 20%, or 1 in 5. (For example: 3 in 5 of all financial workers are women, 1 in 4 are in the top 10%, and 1 in 5 are in the top 1%).

Hispanics in Finance: Men make 39% more than women per year.

Differently Abled in Finance: Men make 26% more than women per year.

Veterans in Finance: Women make 14.5% more per year than men, however veteran women only account for 4% of all financial workers. In the top 10% bracket, men make 1.7% more per year than women. In the top 1% women make 5% more than men.

Occupations: College Educated Males to Females

A salary comparison of college educated men to college educated women whose age is within +/- one year of their counterpart reveals:

Position Men Women

Financial Manager $128K $86KFinancial Analyst $155K $92KFinancial Advisors $125K $82KFinancial Specialist $176K $92KFinancial Clerks $101K $51KTax Preparers $126K $44kBrokerage Clerks $163K $50kBank Teller $29K $26KAccountants and Auditors $103K $69KCredit Analysts $74K $54K

Payroll and Timekeeping $50k $53K

www.prodivnet.com 10

Segment Specific Highlights

African Americans comprise 12.34% of the total workforce.

African Americans are strongly represented in the Transportation and Utilities sector and make up 17.92% of the overall labor force in this sector during July. African Americans are strongly underrepresented in the Financial Activities sector and make up only 9.22% of the overall labor force in this sector during July.

Hispanics comprise 16.23% of the total workforce.

Hispanics are strongly represented in the Hospitality and Leisure sector and make up 21.76% of the overall labor force in this sector during July. Hispanics are strongly underrepresented in the Information sector and make up 10.28% of the overall labor force in this sector during July.

Women comprise 46.5% of the total workforce. Women are strongly represented in the Education and Health Services sector and make up 74.64% of the overall labor force in this sector during July. Women are strongly underrepresented in the Construction sector and make up 8.84% of the overall labor force in this sector during July.

Veterans comprise 5.9% of the total workforce. Veterans are strongly represented in the Public Administration sector and make up 12.85% of the overall labor force in this sector during July. Veterans are strongly underrepresented in the Education and Health Services sector and make up only 3.45% of the overall labor force in this sector during July.

Differently Abled Persons comprise 3.6% of the total workforce.

Differently Abled persons are strongly represented in the Agriculture sector and make up 6.06% of the overall labor force in this sector during July. Differently Abled persons are strongly underrepresented in the Financial Activities sector and make up only 2.4% of the overall labor force in this sector during July.

For additional information about the data and methodology, please click here.

About Professional Diversity Network

We are America’s leading relationship recruitment network for diverse talent, with over three million registered users, including: Veterans, African Americans, Women, Hispanics, Asians, Differently Abled Persons and LGBT professionals. Professional Diversity Network is committed to providing employers who value diversity and inclusion with access to diverse professionals via online recruitment communities and integration with leading professional organizations. Our mission is to provide economic opportunity to all Americans. By efficiently connecting diverse talent with employers, we seek to attack the wealth gap in this country.

We believe that by providing free access to online affinity networking communities for professionals, we can help diminish the professional network gap that is limiting career opportunities for millions. Professional Diversity Network has created online communities for diverse talent that enable professionals of common cultures and interests to connect with the purpose of working towards a common goal of professional development.

www.prodivnet.com 11

In an effort to connect employers who value diversity with diverse talent, Professional Diversity Network provides career services to many of the nation’s leading professional diversity organizations. Organizations like the NAACP, National Urban League, National Black MBA Association and ALPFA, as well as numerous other leading not-for-profit diverse professional organizations, all use Professional Diversity Network’s relationship recruitment affinity networking and job board to power their career centers. In addition to our significant online presence, we also conduct approximately 20 annual professional networking conferences focused on career development seminars and networking opportunities to promote engagement between recruiters and candidates in a unique face-to-face setting. We deliver significant diverse applicant flow to employers who have affirmative action plans, ensuring recruitment value for their compliance budgets. Professional Diversity Network has a suite of products and services designed to address the Office of Federal Contract Compliance Programs (OFCCP) regulatory requirements in a manner that delivers proof positive evidence of an intensive diversity outreach campaign. Results are defined in an annual effectiveness assessment report detailing job views, apply starts and engagement points such as recruitment advertising.

Professional Diversity Network DIVERSITY JOBS REPORT AND DIVERSITY JOBS INDEX is provided in partnership with Job Search Intelligence (JSI). JSI’s data are principally derived from: U. S. Department of Labor, U. S. Bureau of Labor Statistics, U. S. Census Bureau, U. S. Equal Employment Opportunity Commission, National Center for Education Statistics, U. S. Bureau of Economic Analysis, U. S. Federal Reserve, and proprietary resources. All data and methodologies are protected by copyright, patents and pending patents. All rights reserved.

Job Search Intelligence, LLC is the primary data provider for ETC. JSI provides the following statement regarding its sources of data: The data are derived from over 50 different data sources within government agencies and educational institutions. These sources include and are not limited to: U. S. Department of Labor, U. S. Bureau of Labor Statistics, National Center for Education Statistics, U. S. Census Bureau, Common Data Set Initiative, U. S. Equal Employment Opportunity Commission, U. S. Bureau of Economic Analysis, U. S. Federal Reserve. All data and methodologies are protected by copyright, patents and pending patents. All rights reserved.

For more information about the Diversity Jobs Index and Report, please contact:

Kevin Williamskwilliams@prodivnet.comChief Marketing Officer

For more information about Professional Diversity Network’s products and services, please contact:

Dan Sullivandsullivan@prodivnet.comChief Revenue Officer

Office:

801 W. Adams St.Ste. 600Chicago, IL 60607